Housing Outlook: Millennials Optimistic; Nightmare Continues for Others
Owning a home is still part of the American Dream…for some. While reports indicate the real estate and foreclosure crisis might be over for certain homeowners, for others it continues like a bad dream.
The Huffington Post reported that “Despite signs of continued housing market distress, most homeowners and perspective buyers are optimistic about the housing market, according to a survey by real estate website Trulia.” (Scroll down for a graphic.)
In the biannual American Dream Survey, 78 percent of homeowners said their property was the best investment they had ever made. But 20 percent said they felt trapped in a home that was worth less than their mortgage, and 14 percent told surveyors they would walk away from their homes if they could.
The people least likely to be affected by the housing crisis, 18 to 34-year-olds referred to as ‘millennials,’ were most optimistic about a recovery.
According to Trulia, 26 percent had become more positive about owning a home over the past six months compared to 18 percent of 35 to 54 year-olds, and 22 percent of baby boomers.
The key, of course, will be employment. The younger Millennials have much better job prospects than those over the age of 40. In fact, some people over that age will likely not fully recover from this Great Recession unless they heed the advice of the President (and the South Florida Law Blog) that:
1. The rules have changed
2. You must reinvent yourself
I sometimes ask myself if we have not created a new permanent lower- middle class by extending unemployment benefits, and not forcing people to retool.
Trulia American Dream Infographic: